September 13, 2022

Markets:

Stock futures dropped on Tuesday morning after an August inflation report came in hotter than expected.

The August consumer price index report showed a higher-than-expected reading for inflation. Headline inflation rose 0.1% month over month, even with falling gas prices. Core inflation rose 0.6% month over month.

The report is one of the last the Fed will see ahead of their Sept. 20-21 meeting, where they’re expected to deliver their third consecutive 0.75 percentage point interest rate hike to tamp down inflation. The unexpectedly high August report could lead the Fed to continue its aggressive hikes longer than some investors anticipated.

U.S. Treasury yields jumped on Tuesday as investors bet that a hot inflation reading will keep the Federal Reserve aggressive in tightening monetary policy.

The yield on the benchmark 10-year Treasury note surged 7 basis points, trading at 3.43%. The yield on the 30-year Treasury bond was up about 4 basis points at 3.55%.

Portfolio:

We enter todays session holding positions in ENVX, AI, COMM, and CNHI. All positions have Oct strike and we have time and all positions are holding up well in pre thus far. We have room to add further trades, to both sides, to take advantage of trend lines. Just keep in mind, do not chase the opening move. Allow this to settle and then we proceed. Opportunity is now at our door! Let's have a great session and stay patient.